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April 3rd, 2018

Legislative Newsletter - Edition 085

Congress is on fire towards tax cut-off

The Government delivered to the House of Representatives on September 1st of 2017 the Bill (PL8,456/2017). This Bill reduces the percentage used on the gross revenue to calculate this Social Contribution.

Legislative Newsletter - Edition 085

The Government delivered to the House of Representatives on September 1st of 2017 the Bill (PL8,456/2017) which amends Law 12,546/2011, related to the Social Security Contribution on gross revenue. In practical terms, the Bill reduces the percentage used on the gross revenue to calculate this Social Contribution.

It emphasizes that the presentation of the Bill (PL 8.456 of 2017) by the government had as scope to open the debate of this theme on the Congress, since MP (Provisional Measure) 774/2017 that disposes on the contribution of the gross revenue was cancelled. It may be seem that after processing the original PL 8456/2017, 85 (eighty-five) amendments were collected, which are waiting for analysis by the Rapporteur - Representative Orlando Silva (PC do B/SP).

Due to the great number of amendments proposed by the congressmen since the entrance of this Bill on discussion, the Government proposed a substitutive Bill (not yet received by the committee) that substantially changed the Original one. The amendments affects specially companies paying a reduced rate, either 1.5% or 1% on the gross revenue. In relation to the Bill 8,456/2017 that changes the articles 7th, 8th, 8-A, 9th and 10th of the Law n.º 12,546/2011, which includes as granted companies the ones from the communicative field, the companies specialized on defense, the charter companies, among others. The original Bill, and in a bigger scale its substitutive, substantially changes the existing legislation. These amends aim at reducing the acting of the State in the Market. This allows to foster the economic and the employment generation in a period of economical doubts and political Manichaeism. However, the Government is in movement to modify what has been already changed, that is to say, to deliver a “second” substitutive Bill reducing the number grated companies, taking out technology companies.

Considering the trade-off faced by the government in order to approve the measure without having an abrupt lost in revenue, and in the same time don’t put down the agreements made with the congressmen party leaders approved on march 21st a requirement to enhance this matter. Such approval creates a shortcut for voting the Bill on Floor, which is the last step on the House of Representatives. It is now time to follow up the next steps in order to observe whether tripod -Government, Society, Legislative - will keep dialoguing or whether the government will use all its power to impose its wish for more money against Reducing its intervention in the Market.

Finally, the Congress is on fire although there is no deliberative quorum. The question that remains is whether the state union will exonerate or incumber the society.